KNOWLEDGE AND COMPLIANCE: THE INCREASING INTENTION OF MSME’s HALAL CERTIFICATION IN INDONESIA
Abstract
The obligation of halal certification has been promulgated since 2014. However, MSMEs that apply for halal certification are only 1%. This study aims to analyze the effects of knowledge and compliance on the intention of MSME’s halal certification in Indonesia. The study used a quantitative approach. The sample size was 100 respondents representing owners, managers, or leaders of MSMEs in several cities in Indonesia. Samples were taken by convenience sampling technique. Data processing using Smart-PLS. The results showed that knowledge had an insignificant positive effect on the intention to implement halal certification directly. However, mediated by compliance, knowledge significantly affects the intention to implement halal certification. Compliance increases the intention of MSMEs to implement halal certification in Indonesia. Compliance is a crucial factor in increasing the intention of MSMEs to implement halal certification both directly and in the role of mediators.
References
Abbas, J., & Sağsan, M. (2019). Impact of knowledge management practices on green innovation and corporate sustainable development: A structural analysis. Journal of Cleaner Production, 229, 611-620. https://doi.org/10.1016/j.jclepro.2019.05.024
https://doi.org/10.1016/j.jclepro.2019.05.024
Agwu, M. O. (2014). Issues, Challengesand Prospectsof Small and Medium Scale Enterprises (SMEs) in Port-Harcourt City,. European Journal of Sustainable Development, 3(1), 101-114. https://doi.org/10.14207/ejsd.2014.v3n1p101
https://doi.org/10.14207/ejsd.2014.v3n1p101
Ahmadova, E., & Aliyev, K. (2021). Determinants of attitudes towards Halal products. Journal of Islamic Marketing, 12(1), 55-69. https://doi.org/10.1108/JIMA-04-2019-0068
https://doi.org/10.1108/JIMA-04-2019-0068
Ahmed, W., Najmi, A., Faizan, H. M., & Ahmed, S. (2019). Consumer behaviour towards willingness to pay for Halal products. British Food Journal, 121(2), 492-504. https://doi.org/10.1108/BFJ-02-2018-0085
https://doi.org/10.1108/BFJ-02-2018-0085
Aji, H. M., Muslichah, I., & Seftyono, C. (2021). The determinants of Muslim travellers' intention to visit non-Islamic countries: a halal tourism implication. Journal of Islamic Marketing, 12(8), 1553-1576. https://doi.org/10.1108/JIMA-03-2020-0075
https://doi.org/10.1108/JIMA-03-2020-0075
Al-Kwifi, O. S., Abu Farha, A., & Ahmed, Z. U. (2019). Dynamics of Muslim consumers' behavior toward Halal products. International Journal of Emerging Markets, 14(4), 689-708. https://doi.org/10.1108/IJOEM-11-2017-0486
https://doi.org/10.1108/IJOEM-11-2017-0486
Ambali, A. R., & Bakar, A. N. (2014). People's Awareness on Halal Foods and Products: Potential Issues for Policy-makers. Procedia - Social and Behavioral Sciences, 121, 3-25. https://doi.org/10.1016/j.sbspro.2014.01.1104
https://doi.org/10.1016/j.sbspro.2014.01.1104
Anandai, W. A. (2016). Alasan-alasan Pelaku Usaha Makanan Ceker Pedas Tidak Melakukan Sertifikasi Halal (Studi di Kecamatan Lowokwaru Kota Malang). Skripsi. Universitas Islam Negeri Maulana Malik Ibrahim Malang.
Awan, H.M., Siddiquei, A.N., Haider, Z. (2015). Factors affecting Halal purchase intention - evidence from Pakistan's Halal food sector. Management Research Review, 38(2), 1-24. https://doi.org/10.1108/MRR-08-2013-0185
https://doi.org/10.1108/MRR-08-2013-0185
Briliana, V., & Mursito, N. (2017). Exploring antecedents and consequences of Indonesian Muslim youths' attitude towards halal cosmetic products: A case study in Jakarta. Asia Pacific Management Review, 22(4), 176-184. https://doi.org/10.1016/j.apmrv.2017.07.012
https://doi.org/10.1016/j.apmrv.2017.07.012
Bukhari, S. F. H., Woodside, F. M., Hassan, R., Shaikh, A. L., Hussain, S., & Mazhar, W. (2019). Is religiosity an important consideration in Muslim consumer behavior. Journal of Islamic Marketing, 10(4), 1288-1307. https://doi.org/10.1108/JIMA-01-2018-0006
https://doi.org/10.1108/JIMA-01-2018-0006
Caldera, H. T. S., Desha, C., & Dawes, L. (2019). Evaluating the enablers and barriers for successful implementation of sustainable business practice in 'lean' SMEs. Journal of Cleaner Production, 218, 575-590. https://doi.org/10.1016/j.jclepro.2019.01.239
https://doi.org/10.1016/j.jclepro.2019.01.239
De Boni, A., & Forleo, M. B. (2019). Italian halal food market development: drivers and obstacles from experts' opinions. Journal of Islamic Marketing, 10(4), 1245-1271. https://doi.org/10.1108/JIMA-05-2018-0087
https://doi.org/10.1108/JIMA-05-2018-0087
Ferraris, A., Mazzoleni, A., Devalle, A., & Couturier, J. (2019). Big data analytics capabilities and knowledge management: impact on firm performance. Management Decision, 57(8), 1923-1936. https://doi.org/10.1108/MD-07-2018-0825
https://doi.org/10.1108/MD-07-2018-0825
Giyanti, I., & Indriastiningsih, E. (2019). Effect of SME Food Entrepreneurs Knowledge on Halal Certification for Certified Awareness Using Partial Least Square. Jurnal Teknik Industri, 20(2), 36. https://doi.org/10.22219/jtiumm.vol20.no2.36-47
https://doi.org/10.22219/JTIUMM.Vol20.No2.36-47
Gojali, D., & Suci Asih, V. (2020). Determinant factors of Indonesian muslim behavior in choosing halal products. Innovative Marketing, 16(4), 155-163. https://doi.org/10.21511/im.16(4).2020.14
https://doi.org/10.21511/im.16(4).2020.14
Ha, S.-T., Lo, M.-C., & Wang, Y.-C. (2016). Relationship between Knowledge Management and Organizational Performance: A Test on SMEs in Malaysia. Procedia - Social and Behavioral Sciences, 224(August 2015), 184-189. https://doi.org/10.1016/j.sbspro.2016.05.438
https://doi.org/10.1016/j.sbspro.2016.05.438
Henderson, J. C. (2016). Halal food, certification and halal tourism: Insights from Malaysia and Singapore. Tourism Management Perspectives, 19, 160-164. https://doi.org/10.1016/j.tmp.2015.12.006
https://doi.org/10.1016/j.tmp.2015.12.006
Hong, M., Sun, S., Beg, R., & Zhou, Z.-Y. (2020). Chinese Muslim's choice of halal products: evidence from stated preference data. Journal of the Asia Pacific Economy, 25(4), 696-717. https://doi.org/10.1080/13547860.2019.1701827
https://doi.org/10.1080/13547860.2019.1701827
Huq, F. A., & Stevenson, M. (2020). Implementing Socially Sustainable Practices in Challenging Institutional Contexts: Building Theory from Seven Developing Country Supplier Cases. Journal of Business Ethics, 161(2), 415-442. https://doi.org/10.1007/s10551-018-3951-x
https://doi.org/10.1007/s10551-018-3951-x
Jannah, S. M., & Al-Banna, H. (2021). Halal Awareness and Halal Traceability: Muslim Consumers' and Entrepreneurs' Perspectives. Journal of Islamic Monetary Economics and Finance, 7(2), 285-316. https://doi.org/10.21098/jimf.v7i2.1328
https://doi.org/10.21098/jimf.v7i2.1328
Kamaruddin, R., Iberahim, H., & Shabudin, A. (2012). Halal compliance critical control point (HCCCP) analysis of processed food. BEIAC 2012 - 2012 IEEE Business, Engineering and Industrial Applications Colloquium, 383-387. https://doi.org/10.1109/BEIAC.2012.6226088
https://doi.org/10.1109/BEIAC.2012.6226088
Latifah, L., Setiawan, D., Aryani, Y. A., & Rahmawati, R. (2020). Business strategy - MSMEs' performance relationship: innovation and accounting information system as mediators. Journal of Small Business and Enterprise Development, 28(1), 1-21. https://doi.org/10.1108/JSBED-04-2019-0116
https://doi.org/10.1108/JSBED-04-2019-0116
Muhamad, N., Leong, V. S., & Md Isa, N. (2017). Does the country of origin of a halal logo matter? The case of packaged food purchases. Review of International Business and Strategy, 27(4), 484-500. https://doi.org/10.1108/RIBS-06-2017-0049
https://doi.org/10.1108/RIBS-06-2017-0049
Mukhtar, A., & Butt, M. M. (2012). Intention to choose Halal products: The role of religiosity. Journal of Islamic Marketing, 3(2), 108-120. https://doi.org/10.1108/17590831211232519
https://doi.org/10.1108/17590831211232519
Nurhayati, T., & Hendar, H. (2020). Personal intrinsic religiosity and product knowledge on halal product purchase intention. Journal of Islamic Marketing, 11(3), 603-620. https://doi.org/10.1108/JIMA-11-2018-0220
https://doi.org/10.1108/JIMA-11-2018-0220
Oemar, H., Prasetyaningsih, E., Bakar, S. Z. A., Djamaludin, D., & Septiani, A. (2022). Awareness and intention to register halal certification of micro and small-scale food enterprises. F1000Research, 11, 1-55. https://doi.org/10.12688/f1000research.75968.2
https://doi.org/10.12688/f1000research.75968.2
Pratikto, H., Agustina, Y., & Kiranawati, T. M. (2023). The Influence of Various Factors on MSME Halal Certification Behavior: An Analysis With Intention as an Intervening Variable. International Journal of Professional Business Review, 8(9), e3444. https://doi.org/10.26668/businessreview/2023.v8i9.3444
https://doi.org/10.26668/businessreview/2023.v8i9.3444
Pratikto, H., Agustina, Y., & Mutiara, T. (2023). Readiness and Interest in Halal Certification: Evidence of the Importance of Self-declare Literacy and Types of Business of Indonesian MSMEs. AEBMR 246, 193-200. https://doi.org/10.2991/978-94-6463-188-3_20
https://doi.org/10.2991/978-94-6463-188-3_20
Said, M., Hassan, F., Musa, R., & Rahman, N. A. (2014). Assessing Consumers' Perception, Knowledge and Religiosity on Malaysia's Halal Food Products. Procedia - Social and Behavioral Sciences, 130, 120-128. https://doi.org/10.1016/j.sbspro.2014.04.015
https://doi.org/10.1016/j.sbspro.2014.04.015
Simba, A., & Thai, M. T. T. (2019). Advancing Entrepreneurial Leadership as a Practice in MSME Management and Development. Journal of Small Business Management, 57(sup2), 397-416. https://doi.org/10.1111/jsbm.12481
https://doi.org/10.1111/jsbm.12481
Sucipto, S., Fadhila, R., & Astuti, R. (2021). Factors affecting the adoption of halal assurance system (HAS) at a restaurant in sharia concept hotel. IOP Conference Series: Earth and Environmental Science, 924(1). https://doi.org/10.1088/1755-1315/924/1/012053
https://doi.org/10.1088/1755-1315/924/1/012053
Sudarmiatin, S., Khoirul Anam, F., & Wafaretta, V. (2020). The Intention of Halal Certification by Micro Business. KnE Social Sciences, 2020, 141-155. https://doi.org/10.18502/kss.v4i9.7322
https://doi.org/10.18502/kss.v4i9.7322
Sujibto, B. J., & M, F. (2023). Non-Muslim Voices on Halal Certification: From Sectoral-Religious Tendencies to State-Mandated Regulations. Jurnal Ilmu Sosial Dan Ilmu Politik, 26(3), 258-270. https://doi.org/10.22146/jsp.67792
https://doi.org/10.22146/jsp.67792
Tieman, M., Ghazali, M. C., & van der Vorst, J. G. A. J. (2013). Consumer perception on halal meat logistics. British Food Journal, 115(8), 1112-1129. https://doi.org/10.1108/BFJ-10/2011-0265
https://doi.org/10.1108/BFJ-10/2011-0265
Waluyo. (2013). Pengaruh Pemahaman Agama, Motivasi Mendapatkan Profit dan Tingkat Pendidikan terhadap Kesadaran Sertifikasi Halal Bagi Produsen Makanan di Kabupaten Sleman dan Bantul. INFERENSI, Jurnal Penelitian Sosial Keagamaan, 7(1), 75-98.
https://doi.org/10.18326/infsl3.v7i1.75-98
Yun, E. K., Lee, H.-Y., & Kim, D.-H. (2020). Is Halal Certification Necessary for Exporting to Islamic Countries? Focus on OIC Countries. Cultura, 17(1), 173-192. https://doi.org/10.3726/CUL012020.0011
Copyright Transfer Statement for Journal
1) In signing this statement, the author(s) grant UNIMAS Publisher an exclusive license to publish their original research papers. The author(s) also grant UNIMAS Publisher permission to reproduce, recreate, translate, extract or summarize, and to distribute and display in any forms, formats, and media. The author(s) can reuse their papers in their future printed work without first requiring permission from UNIMAS Publisher, provided that the author(s) acknowledge and reference publication in the Journal.
2) For open access articles, the author(s) agree that their articles published under UNIMAS Publisher are distributed under the terms of the CC-BY-NC-SA (Creative Commons Attribution-Non Commercial-Share Alike 4.0 International License) which permits unrestricted use, distribution, and reproduction in any medium, for non-commercial purposes, provided the original work of the author(s) is properly cited.
3) For subscription articles, the author(s) agree that UNIMAS Publisher holds copyright, or an exclusive license to publish. Readers or users may view, download, print, and copy the content, for academic purposes, subject to the following conditions of use: (a) any reuse of materials is subject to permission from UNIMAS Publisher; (b) archived materials may only be used for academic research; (c) archived materials may not be used for commercial purposes, which include but not limited to monetary compensation by means of sale, resale, license, transfer of copyright, loan, etc.; and (d) archived materials may not be re-published in any part, either in print or online.
4) The author(s) is/are responsible to ensure his or her or their submitted work is original and does not infringe any existing copyright, trademark, patent, statutory right, or propriety right of others. Corresponding author(s) has (have) obtained permission from all co-authors prior to submission to the journal. Upon submission of the manuscript, the author(s) agree that no similar work has been or will be submitted or published elsewhere in any language. If submitted manuscript includes materials from others, the authors have obtained the permission from the copyright owners.
5) In signing this statement, the author(s) declare(s) that the researches in which they have conducted are in compliance with the current laws of the respective country and UNIMAS Journal Publication Ethics Policy. Any experimentation or research involving human or the use of animal samples must obtain approval from Human or Animal Ethics Committee in their respective institutions. The author(s) agree and understand that UNIMAS Publisher is not responsible for any compensational claims or failure caused by the author(s) in fulfilling the above-mentioned requirements. The author(s) must accept the responsibility for releasing their materials upon request by Chief Editor or UNIMAS Publisher.
6) The author(s) should have participated sufficiently in the work and ensured the appropriateness of the content of the article. The author(s) should also agree that he or she has no commercial attachments (e.g. patent or license arrangement, equity interest, consultancies, etc.) that might pose any conflict of interest with the submitted manuscript. The author(s) also agree to make any relevant materials and data available upon request by the editor or UNIMAS Publisher.
